Loan competition.

Community banks view credit unions as their primary competitor for consumer loans, according to a survey of community banks conducted by the Federal Reserve and the Conference of State Bank Supervisor and released this months.

In the survey of 521 bankers in 37 states conducted April through July, 41.3% of those surveyed viewed credit unions as their chief competitor for consumer loans.

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And 35.6% of the bankers predicted that credit unions will remain their primary competitor, with 14.9% predicting that fintech firms will emerge as their chief competition.

Respondents to the survey reported for the first time that their cost of regulatory compliance has leveled off or decreased.

Community bankers did not feel as challenged by credit unions when it came to business loans, with more than half saying their chief competitor is other community banks and a scant 5.5% saying credit unions.

Some 10% of the bankers said that in the future, they expected credit unions to be their greatest challenger for business loans.

For mortgage loans, 13% of the bankers said that credit unions were their chief competitor, with 40.8% saying that other community banks were their largest challenger.

The bank examiners also interviewed bankers about emerging trends and the report details them state by state.

In Arkansas, bankers said that they feared the rapid expansion of credit unions into rural areas.

Georgia and Oregon bankers said they feared the growing presence of credit unions in business lending, while bankers in Louisiana said that they were worried about fintech firms and credit unions, contending that both face a smaller regulatory burden than they do.

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